Justin Hazlett BUSN 6610 Harley Davidson Case February 12, 2012 Since Harley Davison Motor Company started in 1903, they have been successfully “taking the work out of bicycling” better than any other motorcycle manufacturing company. They have experienced great success recently with growing numbers in their percentage of motorcycles shipped, up 14 percent from 1997, and their target market size, up 13.8 percent from 1997. Their brand has also grown so strong over the years that customers are willing to wait up to two years for a motorcycle. The problems that Harley Davison is faced with are how to improve their existing purchasing process, how to integrate their existing procurement methods together, and how to develop longer term …show more content…
Ensuring that the software is compatible with the systems that are in place today is also a critical step to making the transition smoother. The high score in the architecture compatibility area shows that this provider took that into consideration as well. Provider1 was also able to customize the off-the-shelf package to meet the requirements that Harley Davidson has developed when the “best practices” fell short. Since the company had already established specific goals that they needed this software to accomplish, looking at the overall functionality of the package is imperative. The qualitative areas that addressed this issue were “overall functionality,” “technical support offerings,” and “web functionality to go.” Provider1 and Provider2 scored as high as possible in these first two areas. However, Provider2 already caries a software solution for the web functionality .The reason that I feel Provider1 is still the best option is because they understand that this will be a necessary component of Harley Davidson’s needs. They have developed a work around for this problem with a partner solution that will help them meet all their needs. Since there is no perfect functional fit offered by the three final providers, the ability to problem solve and develop solutions is a key factor to consider in the decision. Beyond the Matrix Evaluation The qualitative scores of each provider were not the only
Harley-Davidson, Inc. since its inception has specialized in selling dream motorcycles that are of high quality and distinctive in styles. The company in the past have seen turbulent business environment to the extent of leveraged buyout, infiltration of foreign made bikes as well as government regulations. Yet despite these factors, Harley-Davidson continues to reap profits, yield high growth of approximately 15% a year and retain its customer base (Official Website 2004). This position in the market is however limited to the US whereas in other countries of the world Harley-Davidson products remain luxury item requiring emotional attachment with American iconism.
Currently H-D is the leading seller of heavy weight motorcycles across the entire world. Because they are at the pinnacle they are the target for the competition. Some of Harley Davidson 's advantages are name recognition, brand loyalty, brand quality and customer loyalty (Hitt, Ireland & Hoskisson, 2013, p. 81). The company benefits by having “the made in America” image attached to its products. The image of a Harley rider and owner is one of a tough, independent, free spirit, ready and willing to take on the world type of man. The sound of a H-D motorcycle in idle or being ridden is unique and very identifiable.
All companies provided a very satisfactory proposal in terms of functionality. All of them met our requirements by more than 90%. What will definitely act as a tie-breaker is the cultural binding that they might have with us. This is a crucial factor, because we are proposing a bold change and employees need to be accompanied and motivated. We have to make sure the provider knows our philosophy and culture. That will ensure that implementation, training and the change management go as smoothly as possible. No matter how good is the software in terms of functionality, if change and people are not managed carefully, the whole project risks failure. For that reason, our recommendation is provider 1. As top executives are often very sensitive to money issues, I would also stress the fact that provider 1 is the most cost effective option.
• PAHCOM partners with the best solutions providers/vendors in the industry who have made a
Several large applications used by specific departments are slated for purchase or upgrade in the next five years. Skynous would like to explore options for acquiring these applications including their priority and the possible participation with comparable regional systems. Prosoft should provide solutions for this.
Consumers are not limited to a single market, many of them will be purchasing multiple bikes, but all of them have specific preferences. Successful company will meet customer’s needs and maximize sales by growing the potential market size as well as taking sales from competitors.
The cases of Harley Davidson and Bombardier show how both the process of selecting IT systems and software and how the implementation of them can be done. They represent good examples of how careful and methodical approach to decision making can generate efficiency and savings. They also outline several factors that should be considered in the decision making and development processes.
Harley-Davidson treats the dealers not only as partners, but also as customers. Harley has developed a very effective marketing strategy, but it is the responsibility of manufacturing to produce high quality and reliable motorcycles.
2. Based on the information in the case, which provider would you select (and why)? Argue in favor of and against each vendor before arriving at the final decision?
Harley-Davidson's mission statement is to "fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments." (Harley Davidson, 1999). The company's main objective for the entire organization s is to have happy and satisfied stakeholder; this includes their customers, employees, suppliers, investors, and the entire society in general. Harley-Davidson makes the customer's experience with their products the core of their business and every effort is made to make this experience as enjoyable as possible. It is this strategy that has helped Harley Davidson meet its current level of success.
In this paper we will perform a complete analysis of the Harley-Davidson Corporation including their corporate and business strategies, strengths and weaknesses, environmental opportunities, the five industry forces, and financial situation. Harley-Davidson has many attributes, which will be apparent in the following analysis. The paper will attempt to define the different components of the analysis and put them all together in a way that seeks to explain the way that they contribute to the overall success of the company and its stakeholders.
Historically Harley-Davidson to be a Niche Marketer, which is they had focused in on one particular aspect of the market. Kotler and Keller identified the following characteristics of niche marketing; customers have a distinct set of needs, they are willing to pay more to the firm that best suits their needs, it is not likely to attract competitors, gains economies through specialized products and it has a size, profit and to grow. Almost all of these hold true for the “heavyweight” segment of motor cycles that Harley-Davidson produced.
The Motorcycles and Related Products segment was responsible for virtually all of the change in consolidated revenue as the result of increases in both motorcycle unit shipments and Parts and Accessories sales. Year end data indicate that the domestic motorcycle market continued to grow throughout 1993 and demand for the company's motorcycles continues to exceed supply. International demand remains strong with export revenues totaling $262.8 million during 1993, an increase of approximately $23.4 million over 1992. The Board of Directors approved a comprehensive manufacturing strategy designed to achieve the goal of a 100,000 units per year production rate in 1996. Basically, it is an enhancement of the Motorcycle division's ability to
The success of Harley Davidson (HD) is due to the American motorcycle icon’s effective Strategic Management. HD’s vision, mission, goals and objectives strive to exceed the requirements of its main stakeholders. Although these needs are not always met, the company has unique relationships with is stakeholders. The company stays on course with its strategic plan, despite the economy and the decline of American manufacturing and what might be considered its dwindling U.S. consumer base.
After an investigation by the US International Trade Commission, in 1983 President Reagan imposed a 45% tariff on imported bikes and bikes over 700 cc engine capacity. The new management deliberately exploited the past appeal of their big machines, building motorcycles that purposely adopted the look and feel of their earlier models. Quality increased, technical improvements were made, and buyers returned. Harley-Davidson once again became the sales leader in the heavyweight (over 750 cc) market.